The Bush Administration's budget for higher education will negatively affect more than 1.6 million college students who depend on financial aid to pay for college. While tuition costs have increased by more than $2,300 since 2001, this year the Administration has proposed significant reductions in financial aid for college students and their families.

The Pell Grant program is the foundation for our nation's commitment to college access and opportunity. Today, 5.3 million low-and middle-income students rely on Pell Grants to pay for post-secondary education. The maximum Pell Grant award is currently $4,050. This year's budget contains a maximum increase of $100, but does little to compensate for the freeze in past budgets.

While the Administration has purposed a small increase in Pell Grants for this year, it also has changed how the federal government calculates student aid eligibility, cutting deductions allowed for state and local taxes. This change will mean that a total of 81,000 students currently receiving Pell Grants will lose all funding and more than one million students will see their grants cut. I have co-sponsored legislation in this Congress that would undo the Administration's change in calculating student aid eligibility

Unfortunately, the motto seems to be to give with one hand, but take away with the other. For example, the Bush Administration wants to terminate the Perkins Loan program, which provides low-interest loans to 567,000 students who demonstrate substantial need. Two-thirds of Perkins students come from families with annual incomes of $40,000 or less.

The Administration's reasoning is that money for Perkins Loans can be redirected to the Pell Grant program. Unfortunately, they have been shortsighted by not factoring in that colleges and universities must add $1 from their own resources to match every $3 of federal Perkins Loan capital.

In fact, nearly 1,800 colleges and universities use Perkins Loans to address student financial need after Pell Grants and other types of financial aid have been awarded. In addition, Perkins Loans are repaid and are used to assist other needy students. Another consideration is that the loan forgiveness program encourages Perkins recipients to pursue public service careers such as teaching, law enforcement, VISTA and the Peace Corp.

The University of Maryland illustrates the lack of adequate funding in student aid. After four years of study at UM, the average debt was about $13,000. For students from poor circumstances, the average debt exceeded $16,000. Unfortunately, the proposed elimination of Perkins Loans is expected to affect 1,200 UM students. The University also estimates that the recalculation in the Pell Grant formula will translate into a loss of more than $1.1 million in student aid for the 2005-2006 academic year, impacting more than 3,800 students.

It's clear that college students are not the "winners" under the Administration's FY2006 budget. The importance of obtaining a college degree has only increased in the 21st Century. We need to invest in our future and the only way to do that is to make college affordable for every student who has the desire and ability to attend.

##